Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria....

		Proportion of Services Used By
Department	Direct Costs	Maintenance	Cafeteria	Machining	Assembly
Machining	101,000.00
Assembly	68,400.00
Maintenance	42,400.00	0	0.2	0.6	0.2
Cafeteria	34,000.00	0.6	0	0.2	0.2

Compute the allocation of service department costs to producing departments using the direct method. (Do not round intermediate calculations.)

Machining

Assembly

2) Assume that both Machining and Assembly work on just two jobs during the month of August: CM-22 and CM-23. Costs are allocated to jobs based on machine-hours in Machining and labor-hours in Assembly. The number of labor- and machine-hours worked in each department are as follows:

		Machining	Assembly
Job CM-22:	Machine-hours	180	40
	Labor-hours	50	20
Job CM-23:	Machine-hours	40	20
	Labor-hours	30	240

How much of the service department costs allocated to Machining and Assembly in the direct method should be allocated to Job CM-22? How much should be allocated to Job CM-23? (Round "Department rate" to 2 decimal places.)
CM-22 CM-23

Machining:

Assembly:

Solutions

Expert Solution

ekkarill92 answered 4 months ago

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